Settle Your Small Business Taxes That has a Peer-To-Peer Loan
Posted by Saodo on June 29th, 2022
Like the words goes, "The sole things certain in your everyday living are death and taxes." Unfortunately, small check here owners know this saying increasingly well.
Unlike employees who expect their refund every April, small businesses loath the approaching spring, knowing they should pay Uncle Sam its share in their profits. Each and every year, small companies struggling to make money inside an increasingly competitive business environment should pay taxes so as to keep their doors open.
With dwindling profit margins and tightened lending restrictions, however, many small company owners are between a rock and a hard place when it's time to give the tax man. Although a business might have steady sales and revenue or 1000s of dollars in inventory, banks and traditional finance companies simply aren't presenting organization loans like these were in year's past, leaving small company owners with few funding choices to pay their tax bill.
Thankfully, peer-to-peer lending, or social lending, has solved this growing dilemma. These modern social lending marketplaces have connected millions of borrowers with individual investors. Borrowers receive low-interest, fixed-rate loans which can be cleared in 2 to five years, while investors can take advantage of decent returns in an economy with sinking bond and savings rates.
Thus, it's a win-win situation for both small businesses wanting immediate funding and investors looking to have a small profit while helping others.
From Desperation to Exultation: One Man's Adventure into Peer-to-Peer Lending
John Mitchell is surely an Ohio-based small enterprise owner who found himself in this particular predicament just last year. As web-sites the only real home improvement store in a small town, John's store flourished the first few years it turned out open.
Once you have his inventory levels, pricing models, and management perfect, he decided to flourish his business by opening another location in a very neighboring town. John sunk all of his profits into opening his new store, which meant he was short on funds come tax time. However, knowing the achievements of his business, he thought he would simply receive a small loan from the financial institution that housed his accounts and provided him with the original loan he used to launch his business 4 years earlier.
Unfortunately, he witnessed first-hand the effect the recession has already established on lending regulations because banker he's known for years denied his loan application. If he couldn't get a loan there, where could he?
Around the brink of despair, John popularized the Internet to examine loan options. After digging through forums and seeking some different searches, he ran across peer-to-peer lending. In under a week after checking quick and simple application, he received a personal bank loan in a low rate for your amount he needed. Not much later, John sent a search for all of the add up to the IRS, and less than eight months later, he managed to repay the money with the earnings from his new store!
If you're a small enterprise owner who has found yourself in much the same circumstance, peer-to-peer lending can perform same in your case likewise, so how does peer-to-peer lending work?
How Peer-to-Peer Lending Works
A breakthrough service or product emerges every generation, and in the early 2000's, the emerging breakthrough was social networking. From helping in the business of overthrowing political regimes to staying in contact with friends and family members, social network has had a profound effect on our daily lives. Now, it's changing the tiny business financing landscape as well.
Peer-to-peer lending is a contemporary online community solution for small companies looking for the best way of securing alternative funding. The objective of peer-to-peer lending sites, for example Prosper and Lending Club, is in order to connect individual investors with those wanting funding, and they sites have grown to be an increasingly useful tool for small companies who aren't able to secure funding from traditional lenders.